Empowering Enterprises to Transform Emerging Markets
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- Silas McGee
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2 A message from the CEO Dear Friends: I am delighted to share with you our most recent annual report. This year we chose the theme expanding horizons to capture our continued efforts to broaden the scope of our activities, reaching ever more companies and people in emerging markets, especially on the African continent. In 2007, we hosted the seventh Making Markets Matter workshop in South Africa. This executive education series continues to attract a broad array of small and medium-sized enterprises as well as governmental and private-sector organizations. Once again the workshop brought together an enthusiastic group of participants and talented facilitators for a series of stimulating classroom sessions, evening lectures, and group activities. We are thankful for the support of our local partners, who continue to play an important role in the workshop series. Market Matters Inc. s other major initiative, the Seeds of Development Program (SODP), had a successful year as well. The SODP network now includes 25 African-owned seed companies in East and Southern Africa. Throughout the year companies participated in a series of capacity- and network-building activities that aimed to increase their competitiveness. As these companies serve mostly rural small farmers, their growing success is leading to better services to their customers, greater agricultural productivity, higher incomes, and reduced poverty rates. Our continued association with Cornell University enables us to incorporate into our programs the latest research on business development services and current trends in biotechnology, especially as they relate to Africa and food security. Our relationship to Cornell is of great benefit to us and our programs: having access to the latest research challenges us to improve the quality and content of our programs and to expand the horizon of the activities and vision of Market Matters Inc. We are grateful for the continued support of our stakeholders and friends, and we look forward to keeping you informed as we continue to work toward our mission of developing effective business solutions that will enhance the standard of living in emerging markets. Ralph Christy CEO, Market Matters Inc. Empowering Enterprises to Transform Emerging Markets Board of Directors Ralph D. Christy, Chair Professor, Cornell University Ithaca, NY Natasha Blackshear CEO, Blackshear Capital & Legal Services Nashville, TN Robert Herdt Professor, Cornell University Ithaca, NY Francisco Pedraza International Management Consultant Chicago, IL Kenneth Robinson Professor, Clemson University Clemson, SC Mark Wenner Economist, Inter-American Development Bank Washington, DC we seek to expand the scope of our activities, reaching ever more companies and people in emerging markets
3 Programs and Activities SODP Fellow examines seeds during a visit to a South African seed company. SODP Fellows at the 2007 MMM workshop closing banquet. the Seeds of Development Program (SODP) has had another successful year. Among its activities were two workshops: the first focused on research and commercialization in the seed industry, while the second, the Making Markets Matter workshop, offered business training. In addition, the SODP organized the annual Seed Trading Forum, where participating companies had the opportunity to network and trade with one another. To build capacity within the companies, SODP sponsored visits to other seed companies and agro-input dealers to promote learning, information exchange, and business opportunities. Finally, to increase the visibility of participating companies, the program provided financial assistance to help SODP Fellows build and update company websites. In addition to these specific events, SODP Fellows continued to engage with MM Inc. staff throughout the year for business consultations and advice. Bridging the Gap between Research and Commercialization The Third General Meeting on Biotechnology Breeding and Seed Systems for African Crops organized by the Rockefeller Foundation and the Ministry of Agriculture in Mozambique was held on March 26 29, 2007, in Maputo, Mozambique. Bringing together plant breeders, molecular biologists, and seed specialists linked to the Rockefeller Foundation s Program on African Crops, the meeting s objectives were to demonstrate the most effective methods for crop genetic improvement and seed supply enhancement in Africa and to provide program leaders opportunities to become partners in new efforts to develop better crops for African farmers. Over 300 delegates participated in discussions on diverse topics including molecular breeding for variety development and the emergence of private, independent seed trading in Africa. Market Matters Inc., through the SODP, organized and chaired a special plenary session entitled Bridging the Gap between Research and Commercialization: Transfer of Varieties from Public Research Institutions to Private Seed Companies. Panelists and participants discussed ways to better coordinate the flow of biotechnology from public discovery to private use. The well-attended session featured an expert panel representing the private and public sectors and a general discussion about how publicsector researchers can work collaboratively with private seed companies to get new varieties from the research laboratories to farmers fields. In addition, throughout the conference SODP Fellows made presentations about their companies, thus showcasing emerging African seed companies Seed Trading Forum Strengthens Network The third annual Seed Trading Forum took place on June 25 28, 2007, in Lilongwe, Malawi. The goal of this activity was to provide SODP Fellows the opportunity to network and explore seed trading and other collaborative initiatives within the network and to gain exposure to the host country s seed and related industries. Informal networking: SODP Fellows at the Making Markets Matter workshop. SODP Fellows study production charts during field trip in South Africa. Participants came from Kenya, Malawi, Mozambique, Tanzania, Uganda, Zambia, and Zimbabwe. Invited special guests included Malawi s Deputy Minister of Agriculture Binton S. B. Kutsaira and Principal Secretary in the Ministry of Agriculture in Malawi Patrick Kabambe. A number of guest speakers also attended the forum, including representatives of Agricultural Extension and Training Services of the Ministry of Agriculture (Malawi), the Alliance for a Green Revolution in Africa, the International Center for Tropical Agriculture, the International Crops Research Institute for the Semi-Arid Tropics, the International Institute of Tropical Agriculture, the Malawi Agricultural Commodities Exchange, and the Seed Trade Association of Malawi. The invited speakers gave an overview of the seed sector in Malawi and described their organizations role in and contributions to it. For their part, SODP Fellows made brief presentations highlighting their companies profiles and outlined potential business opportunities within the SODP network. Based on the post-workshop evaluation, at least thirty collaborative deals were initiated during the event. The Forum also provided an opportunity for Fellows to discuss the future direction of the SODP, and many expressed an interest in taking greater ownership of the program in the future. To expose participants to the local seed industry, the program concluded with a field tour of the Chitedze Research Station, where Fellows had a firsthand look at the ongoing research and development of crop varieties in Malawi. SODP Field Trips Explore New Business Opportunities Each year SODP sponsors Fellow companies to visit other agribusinesses to promote information exchange and new business partnerships. In 2007, SODP Fellows visited China, France, Madagascar, Kenya, Uganda, and Tanzania. To receive support, Fellows submit an application detailing the objectives of the proposed travel, and the SODP provides a modest contribution towards the costs. Upon their return Fellows submit a detailed trip report, which includes lessons to be shared with other companies in the network. Fellows consistently report that field trips are highly beneficial to their businesses. Visits to other SODP companies have resulted in learning and the creation of joint business ventures, while visits to companies outside of Africa have enabled Fellows to introduce new products into the African markets they serve. Online Presence Expands Visibility for SODP Fellows Every year the SODP offers Fellows financial assistance to build new or update existing company websites. This online presence provides Fellows increased visibility and, within the SODP network, allows Fellows to keep abreast of new products and business opportunities within the network. In 2007, three more SODP Fellows completed their websites, bringing the total number of company websites to fourteen. In an effort to further promote online communication and networking among Fellows, the SODP has recently set up the SODP Group Hub an online, members-only facility that allows Fellows to share information about trading opportunities and for SODP staff to share news and information with program participants. A South African participant shares ideas during the MMM7 workshop. Guest speaker Dr. Mohammad Karaan (right) and proud participant at the MMM7 Closing Banquet. the seventh Making Markets Matter workshop was held in Stellenbosch, South Africa, on May 14 17, The annual workshop series, an initiative that grew out of a collaboration among Market Matters Inc. and Cornell and Stellenbosch universities, aims to expand the capacity of African agribusinesses to meet the ever-increasing demands of today s global food system. Since the program s inception, over 400 participants from agribusiness firms, business development services, nongovernmental organizations, government departments, and donor agencies have participated in the workshops. After seven successful consecutive annual workshops, Making Markets Matter is now regarded as a premier business development services training program for emerging entrepreneurs in East and Southern Africa. A total of 37 participants attended the workshop in Participants represented eight African countries, while facilitators came from Botswana, Kenya, Mozambique, South Africa, and the USA. Participants rated the workshop highly, including the thoughtful presentations delivered by facilitators and guest speakers and the learning environment, which was conducive to discussions and networking. The case study approach, a key component of our training method, gave participants practical insight into business processes and offered an opportunity to apply the tools introduced in the workshop to real life situations. Three guest speakers (Ugandan business owner Michael Kijjambu, Charlene McKoin of Africare Mozambique, and Joyce Njoba of Kenya) gave excellent presentations about the challenges and opportunities facing African agribusinesses in a global economy. The workshop featured several evening programs that created an atmosphere conducive to informal networking and to the continued exchange of ideas. In addition to the opening reception, participants were treated to a dinner at Moyo Restaurant, which specializes in cuisines from the entire African continent, and a South African braai (cookout) at a local winery. The program concluded with a formal banquet, where participants received their certificates of attendance. The banquet also featured a number of invited guests from the South African agribusiness sector and guest speakers Andrew Makanete (ABSA) and Dr. Mohammad Karaan (Stellenbosch University), who congratulated the new graduates. ever more companies and people in emerging markets and assisting them on their journeys toward a success that enhances the local community s standard of living
4 Our Donors Organizations Ad Hoc Foundation Alpha Phi Alpha Alumni Chapter Individuals Anonymous (4) Adelaja, Soji Akridge, Jay and Michelle Allen, Ivye L. Baharanyi, Ntam & Bernice Barrett, Christopher B. and Clara S. Bezuneh, Mesfin Blackshear, Natasha Bonnen, James T. Brown, Michael Christy, Anthony Christy, Caleb (Duane and Felicia) Association of Extension Administration Christy, Clinda Christy, Larry H. and Joyce T. Christy, Paul A. Christy, Ralph Christy, Reginald Christy, Ruth and Shelly Dassie, Wylin Davis, Carlton Forker, Olan D. and Katie Glory Foods Gorman, Julia Guedry, L.J. and Ann V. *restated Cornell University Fall Creek Management Herdt, Robert and Lorna Hinson, Roger Holdcroft, Lane Johnson, Willene Jones, Eugene Kennedy, Ronald Kerns, Samuel & Ian Anderson Kiiti, Ndunge C. Kraft, Leon Lerner, Scott and Caroline Mabaya, E. and K. Tihanyi McDowell, Donald D., Dr. San Francisco Foundation Seevers Family Foundation Mukunya, Alfred Pedraza, Francisco and Sarah Renusson, Gilles Roberson, Quinetta Robinson, Ken Stalnaker, David & Eva Tomek, William Wenner, Mark West, Sherece Y. Williams, Ellis E Financial Report Revenues * Consulting income 9,970 55,800 Contributions 35,600 34,955 Workshop income 62,283 55,142 Other income 29,983 22,315 Net assets released from donor restrictions 798, ,051 Total Revenues 936,568 1,092,263 Expenses Program Services Fellows training and other activities 126, ,579 Workshop 61,173 54,794 Supplies 5,224 9,192 Printing 1, Travel 68, ,016 Equipment 11,777 10,526 Communication 6,477 21,846 Website development 10,059 5,112 Research 64,500 75,900 Personnel Salaries and benefits 292, ,425 Consulting 21,369 81,660 Miscellaneous -0-17,288 Total Program Services 669, ,338 Support Services Rent 24,000 24,000 Professional fees 8,387 8,359 Payroll expenses 1,559 1,406 Travel and entertainment 5,781 3,681 Insurance (31) (31) Miscellaneous 4,098 3,482 Total Support Services 43,794 40,897 Total Expenses 713, ,235 Change in Unrestricted Net Assets 223, ,028 that enhances the local community s standard of living
5 Market Matters Inc. 401 S. Albany Street Ithaca, NY USA Ph: (607) Fx: (646) Designed by Knowledge Town Photography by Danfung Dennis Pippa Lockhart Edward Mabaya
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